Key Points
- Casa Grande annexed 1,271 acres on Dec. 1, extending city limits south to Interstate 8.
- The land sits along the Thornton Road corridor near Lucid’s AMP-1 facility.
- Council approved five related actions, including annexation, a General Plan change, and rezoning.
- A total of 1,308 acres were rezoned: 1,198 to Industrial (I-2) and 110 to Community Services (B-4).
- I-2 zoning prohibits all housing, including single-family, multifamily, and high-density units.
- The land is owned by Pinal County and leased to Lucid under a 2022 three-party development agreement.
- Lucid holds a purchase option on the land that becomes available next year.
- No development plans were approved; any future projects will require a major site plan review.
- Infrastructure can be served by existing utilities, according to the city’s Infrastructure and Services Plan.
- The annexation strengthens continued industrial growth along the I-8 corridor, where several major energy and data projects have recently been approved.
Casa Grande City Council unanimously approved annexing approximately 1,271 acres on December 1, 2025. The Project Saguaro annexation sits generally between Selma Highway and Interstate 8 on both sides of Thornton Road, with several parcels north of Selma near Chuichu Road and Burris Road. The annexation extends city limits to Interstate 8, creating a significant new industrial zone. Residents should expect future development in this corridor to follow city regulations and design standards rather than county rules.
What the Council Approved
The council voted 7-0 on five related actions during the December 1 meeting:
- Resolution 5860: Infrastructure and Services Plan adoption
- Ordinance 3486: Annexation with initial Urban Ranch zoning
- Resolution 5273.40: Growth Area change from Phase 2 to Phase 1
- Ordinance 1178.470: Rezoning 1,198 acres to General Industrial (I-2)
- Ordinance 1178.471: Rezoning 110 acres at Thornton Road/I-8 to Community Services (B-4)
The council annexed 1,271 new acres into city limits. The rezoning covers 1,308 total acres—this includes both the newly annexed land and approximately 37 acres already within city limits from a 2021 annexation. Of the 1,308 acres, 1,198 received I-2 industrial zoning and 110 received B-4 commercial zoning.
The B-4 zoning at the Thornton Road and I-8 interchange positions that property for retail and service uses that would support area employees and interstate travelers.
Under the General Plan, development should occur in Phase 1 areas before Phase 2 areas. Reclassifying this land to Phase 1 indicates the city can provide water, wastewater, and municipal services cost-effectively, allowing development to proceed. The 2030 General Plan assumed this reclassification would occur with annexation, given planned improvements to Thornton and Burris roads.
Senior Planner Jaclyn Sarnowski presented the items to council. She noted the Planning and Zoning Commission had voted unanimously on February 6, 2025 to recommend approval of the General Plan amendment and zone changes.
The Existing Agreement Behind the Land
Pinal County owns the property under a lease-purchase option agreement with Lucid Motors that dates to 2022. A three-party development agreement between Casa Grande, Pinal County, and Lucid established the framework for annexation and industrial development.
Michael Cruz, head of government affairs for Lucid Motors and a Casa Grande resident, addressed the council to clarify the land’s status. He emphasized the property is not state trust land or federal Bureau of Land Management land.
“This is land that belongs to Pinal County that was obtained early on as part of this agreement,” Cruz explained.
Lucid currently leases the land from Pinal County and has the right to purchase it. That purchase option is set to come up next year, according to Cruz.
No Housing Permitted Under New Zoning
The I-2 General Industrial zoning explicitly prohibits residential development. Cruz emphasized this point multiple times during his comments.
“This item is for the annexation and rezoning to Industrial I-2. This particular land is not intended or eligible for use for any type of single-family housing, multifamily, high-density housing, or anything like that,” Cruz stated.
When Councilmember Matt Herman asked for confirmation, Cruz responded: “Even if you wanted to, what we’re seeking as part of the I-2 designation does not permit from a land use planning and zoning perspective. With this designation, no multipurpose, single-family, high-density housing is permitted under this.”
The purpose, Cruz explained, is to create “the framework and groundwork to be able to innovate, create new opportunities, jobs, manufacturing, and future for any type of industrial user in which intends to utilize that land.”
Who Pays for Infrastructure
City Manager Larry Rains addressed questions about infrastructure costs. The city entered an incentive agreement with Lucid focused primarily on roadway improvements, he said.
“We focus on a performance-based type of a system in Casa Grande when we do incentives, and typically they are for public infrastructure,” Rains explained. He noted the city had already run sewer lines to the existing site.
Cruz added that Lucid’s investments have benefited the broader community, including the Western Transmission Water Project that brought additional water capacity from the eastern to western portions of the city.
The Infrastructure and Services Plan confirmed the area can be served by existing utilities. Arizona Water Company provides water service.
Lucid’s Future Plans Remain Unspecified
Seth King, Managing Counsel for Global Zoning, Land Use, and Licensing at Lucid Motors, clarified what the approval does and does not authorize.
“There is no specific development plan that’s associated with this annexation and rezoning. That’s not part of the request that is before you tonight,” King stated. “There may have been some rumors that Lucid is proposing some big expansion of its manufacturing plant. That’s not, again, part of what is before you tonight.”
King emphasized that any future development would require additional approvals. “Any specific development plans would be compiled in the future, and we would bring them forward and they would be subject to site plan review and likely development agreements as well,” he said.
Cruz added context about the company’s local significance: “We’re the largest employer in Pinal County, and we’re gonna continue to work. A good majority of our community in terms of density and population that work at Lucid come from Pinal County.”
Phoenix Residents Request Delay, Cite Concerns
Two speakers from Phoenix asked the council to delay the vote. Both represented Worker Power, a nonprofit focused on economic, social, and racial justice.
Jordan Greenslade of Phoenix said the organization had surveyed hundreds of community members. “Many have cited concerns around the environment, infrastructure, quality of jobs created,” Greenslade stated. He claimed about 165 emails from residents had been sent to the Council asking for a delay. Planning staff reported receiving two inquiries before the February commission meeting and no comments or inquiries between February and the December council meeting.
Greenslade questioned whether the infrastructure plan provided sufficient detail. “How much water and power will the Lucid expansion use? Are there guarantees that the developer will take on the cost of increased infrastructure development if necessary?” he asked.
Margaret Schultz, also from Phoenix, raised similar concerns. “The rezone narrative says that this is a forward-looking application and planning effort, therefore this site has not been master planned as to the exact nature, size, nor scope of employment uses,” Schultz noted. “However, it’s strange that the zone change narrative does not mention that there is already an end user for this site, Lucid Motors.”
City Notes Previous Public Hearing Received No Comments
Mayor Lisa Navarro Fitzgibbons asked staff about prior public engagement. Sarnowski confirmed a public hearing was held January 6, 2025, but she believed no one spoke at that meeting.
The planning process included notification to property owners within 1,000 feet, publication in the Casa Grande Dispatch, and posted signs on the subject properties. Staff received only two inquiries before the February Planning and Zoning Commission meeting.
City Attorney Brett Wallace noted residents would have future opportunities for public comment during site plan reviews.
Mayor Fitzgibbons observed that having the property within city limits provides more local control. “It seems like it’s a benefit to have it at the city level so we can kind of control what that development is going to be,” she said.
Area Context and Nearby Rural Development
The annexation includes 25 parcels from two landowners: Pinal County and Thornton Corridor LLC. Some rural residential properties exist to the east and west within Pinal County jurisdiction.
To protect existing rural residents, the city imposed conditions on the I-2 zoning. Outdoor storage visible from adjacent properties must be screened with decorative masonry walls. No conditional uses involving volatile or explosive materials are permitted within 600 feet of existing or future residential uses or within 600 feet of Thornton Road, Selma Highway (east of Thornton), or Chuichu Road. Additionally, I-2 zoning requires a 75-foot minimum building setback from residentially zoned properties.
Part of Growing I-8 Corridor Industrial Development
This annexation continues industrial expansion along the I-8 corridor, where thousands of acres are being developed for energy generation, data centers, and industrial facilities.
Recent Pinal County Board of Supervisors actions have approved several major projects in this corridor. Griffin Energy received approval for a 2,685-acre solar, battery, and gas facility. Project Bella won approval for 352 acres of gas-fired and battery power generation south of Casa Grande. The Midway Data Center near Casa Grande project covers 215 acres.
The Silver Reef Solar and Battery Project, originally planned for 801 acres with 150 megawatts of solar and 200 megawatts of battery storage, was withdrawn after receiving an 8-0 denial recommendation from the Planning and Zoning Commission in October 2025.
Pinal County also recently approved a hard rezone of 24.23 acres from General Rural to Light Industrial (I-2) near Casa Grande along South Trekell Road, signaling continued industrial growth in the region.
Regional Manufacturing and Utility Infrastructure
Casa Grande’s 2030 General Plan identifies this southern industrial area as critical to future growth. The plan notes the area can be readily served with sewer, water, and municipal services.
Utilities available to future industrial users include Arizona Public Service for electricity, Arizona Water Company for water service, Southwest Gas Corporation for natural gas, and multiple telecommunications providers. Water mains were installed along Thornton Road during recent construction.
Both Thornton and Burris Roads are slated for improvement to arterial standards, with enhanced interstate connectivity expected. These improvements provide distribution access via Interstate 8, making the corridor attractive for industrial and warehouse development, according to the General Plan.
What Happens Next
The annexation is now complete, and zoning is in place. However, no specific development can occur without going through the city’s Major Site Plan review process. Major site plans are now administrative rather than requiring Council approval, following a state legislature change. Nearby property owners will receive notification when major site plans are submitted. Residents can also watch for related items on City Council meeting agendas.
